Tariff implications.........

Mikado463

Mikado463

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I hope this doesn't get too politically riled up, but here goes.........

What are one's thoughts with tariff increases and where the hobby is headed ? With so much of the industry dependent on all sorts of components from all over the globe there's sure to be some upheaval
 
Why don't you talk about all the tariffs and VAT taxes that countries outside of the U.S. already place on audio gear from the U.S.? That would be a great way to start this conversation.
 
mep, before you get your panties in a bind you had better go back a re-read my post ! Not once did I mention a specific country or direction of travel with respect to goods !

so there, you want continue constructively, good, have at it ;)
 
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That’s a tough one. But I am going to guess: 1) the European/Japanese makers of high end audio Audio will see their US market share decline because their already expensive products will be become even more so , 2) the sales of US manufacturers (assuming that they are still made in USA) will increase, and 3) the biggest increase will be Chinese products even if hit with 125% tariffs. YMMV
 
You can't have a meaningful conversation about the implications of tariffs on audio gear without talking about the countries that manufacture and import/export audio gear and what their current tariffs and VAT are to protect their manufacturing base.
 
nicoff said:
That’s a tough one. But I am going to guess: 1) the European/Japanese makers of high end audio Audio will see their US market share decline because their already expensive products will be become even more so , 2) the sales of US manufacturers (assuming that they are still made in USA) will increase, and 3) the biggest increase will be Chinese products even if hit with 125% tariffs. YMMV
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With respect to China, think of the companies that have moved so much of their production over there, KEF for example and many others. Have to wonder what percentage of the tariff increases can and will be absorbed ?
 
Since China currently has the highest tariffs placed on them, why not start a list of audio companies worldwide that have offshored their production to China?
 
I agree that U.S. audio companies are probably going to benefit. Pass Labs may feel the pain as they do a lot of overseas sales. But maybe not since many of the people that buy their gear can absorb the extra cost.
 
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My plan: you can’t raise MSRP because we’ve see what happens when you make the MSRP $120k and lower it to $105k. All hell breaks loose. What I plan on doing, with my Luxury HiFi Distribution is MSRP + Tariff Tax. Temporary tariff tax if you will. But the situation is so liquid, I haven’t done anything! I’m at axpona enjoying the show and the wonderful people.
 
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Mike said:
My plan: you can’t raise MSRP because we’ve see what happens when you make the MSRP $120k and lower it to $105k. All hell breaks loose. What I plan on doing, with my Luxury HiFi Distribution is MSRP + Tariff Tax. Temporary tariff tax if you will. But the situation is some liquid, I haven’t done anything! I’m at axpona enjoying the show and the wonderful people.
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See you at AXPONA, Mike
 
As an international here is my 0.02 ...

Here in India we have had Import Tariffs on all goods for years. In the 70s and 80s it was as high as 300% on most goods. Nowadays it varies from 24% to 38% depending on the category of goods. The kicker is that local taxes stack up on top of the tariffs causing the "landed prices" to go up a further 10% or so (here in India). On average the final landed cost averages to about 38% - 42% on the Invoice Value.

Our governments give the same excuse of protecting/developing local industry. But the truth is that they make a lot of money taxing imported goods. In many cases there are no local equivalents at all but the goods are taxed just the same. We had a discussion a few years ago that revenues on electronic goods alone exceeded our defense budget. Once again this is our situation in India but just sharing this to give you an idea about how attractive it is as a revenue stream for governments.

I am not sure what the final impact will be for the US but for us it ends up costing us around 30% - 40% extra on everything. As end users it absolutely sucks. We are all looking at these developments hoping that the pressure exerted will end up causing our government to reduce import tariffs. But for us it has always been a repressive practice disguised as something else.


.
 
mep said:
Since China currently has the highest tariffs placed on them, why not start a list of audio companies worldwide that have offshored their production to China?
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I'll give you one for starters and a well regarded brand as well ............Perlisten
 
Mikado463 said:
mep, before you get your panties in a bind you had better go back a re-read my post ! Not once did I mention a specific country or direction of travel with respect to goods !

so there, you want continue constructively, good, have at it ;)
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don't think Tariffs aren't going to influence U.S manufacturers, where do you think companies such as Magico and YG get their aluminum for the boxes and neodymium magnets for the drivers, other companies get their drivers and capacitors?

even if the product is manufactured in the US, some major parts not.
 
mep said:
You can't have a meaningful conversation about the implications of tariffs on audio gear without talking about the countries that manufacture and import/export audio gear and what their current tariffs and VAT are to protect their manufacturing base.
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You are mistaken about VAT. It is not an entry tax that would apply only to imported products upon their entry into the market, but a consumption and value-added tax that applies to all consumed products, including local products. For example, in France, a French car or a French hi-fi product are also taxed at 20% even if they were manufactured locally. There is therefore no discrimination regarding the origin of the product in this tax, contrary to what you are wrongly led to believe.
 
exupgh12 said:
don't think Tariffs aren't going to influence U.S manufacturers, where do you think companies such as Magico and YG get their aluminum for the boxes and neodymium magnets for the drivers, other companies get their drivers and capacitors?

even if the product is manufactured in the US, some major parts not.
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ahhh yeah, I'm very well aware of all of that. So what's your point ?
 
exupgh12 said:
But in reality US don't have all materials, for instance Neodymium, Dysprosium, Terbium, Europium that are needed for EV's aren't found on US soil
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What do you thing the mineral deals with Ukraine and the Annexing of Greenland is all about? They both have what we need and to be able to sidestep China. And EVs are the least of our worries right now. 90% of Antibiotics are MFG'd in China as well as many other meds. I hope those of you who do take Pharmaceuticals are stocking up. US will soon become the global dominator in manufacturing, we have already seen the billions invested already this year.
 
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